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Registered Education Savings Plan (RESP)

Registered Education Savings Plans, or RESPs are education investment plans that help you accumulate money for a child’s post secondary education. An RESP is an easy way to save for a child’s future. Planning for a child’s education through RESP contributions is a sound, responsible, simple way to help pay for a post-secondary education.

Free Money

No money for your child’s education? Even with no contributions, you could qualify for $500 or more from the Government of Canada with the Canada Learning Bond (CLB). This bond can help you start saving early for your child’s education after high school.

On the first $2,500 you save every year in your child’s Registered Education Savings Plan (RESP), the Canada Education Savings Grant (CESG) will give you:

up to $600, if your net family income is $45,282 or less*

up to $550, if your net family income is between $45,283 and $90,563*, or

up to $500, if your net family income is more than $90,563*.

*2016 data provided by Employment and Social Development Canada. Please note that the family income amounts are updated every year.

The maximum amount of grant per child is $7,200.

Your child can use the money for full-time or part-time studies in an apprenticeship program, CEGEP, trade school, college or university.

Great Flexibility

Income earned accumulates tax free until withdrawn - Students (with little or no income) withdrawing RESP funds will owe little or no tax. Virtually all full-time, post-secondary education is eligible. For family plans, you can name as many beneficiaries as you’d like. If one child doesn’t go to post-secondary school, another child can still use the money. If your child doesn’t pursue a post-secondary education, you may be allowed to transfer up to $50,000 of earnings from your RESP to your RRSP or a Spousal RRSP tax-free – assuming that the subscriber and/or spouse has RRSP contribution room available. RESP contributions and earnings may be withdrawn any time (certain conditions apply).